Coding errors strip years of credit from borrowers seeking public service loan forgiveness

Christina Quinones, employed by a Texas school district, was only two payments away from qualifying for Public Service Loan Forgiveness when a servicer notice reduced her count from 118 to 98, extending her path by nearly two years. The reduction stems from Department of Education coding errors that changed the status of some payments after a May 2024 credit extension for previously ineligible payments. Another borrower, Jennifer Krabill, who spent over a decade in state jobs in New Jersey and Maryland, saw eight of her 90 qualifying payments reclassified as non-qualifying, pushing back her forgiveness date.

Both borrowers report vague explanations from their loan servicers and are pausing further payments until the issue is clarified. The changes follow the Trump administration’s July 1 repayment overhaul, which has caused higher bills and confusion for many borrowers. Advocates are urging the Education Department to hold servicers accountable and restore the lost credits while litigation challenges a proposed rule that would narrow PSLF eligibility.